597m Pound(land)

Wednesday, 13 July: Euro zone growth has been downgraded by international institutions following the Brexit vote. However they have stated the real impact will be decided by how political talks play out with London in the future. On a similar note markets were bolstered by Angela Merkel’s suggestion that intensive and promising talks were ongoing to resolve Italy’s banking woes.

Speaking on Tuesday James Bullard, St. Louis Fed President stuck with his view that the US may only need a single rate hike for years to come. He added that adding 200,000 jobs a month isn’t realistic anymore and that the appropriate target interest rate for the Fed is also low, meaning only an unexpected shock may justify further interest rate movements in either direction.

All in all markets at the moment and taking all they can from a steady flow of small positive news snippets. As we write both the Dow and S&P have tailed from their record closing highs yesterday, albeit not by a great deal. The Nikkei’s third straight day of gains wasn’t enough to inspire European indices to another rally although; the CAC closed flat but London shares all finished down. Once again the markets lacked any conviction to really damage the recent ground we’ve made up. The FTSE 100 closes Wednesday at 6,670.4.

Winners on the day were Burberry, after better than feared results were released today, adding to their news from Monday that they would be bringing in a new CEO next year. Burberry has been one of many companies to benefit from a fall in the value of the pound; however sales in China and Hong Kong still remain a big worry for the Group. Shares ended the day 6.32% higher.

Poundland shares rallied today after the Group agreed a takeover from South African retailer Steinhoff international Holdings for £597m. The bid was agreed just in time and shares closed the day 12.6% higher.

The Chairman of JD Wetherspoon Tim Martin spoke today following the company’s latest trading update. He has criticised those ‘’doom-mongering’’ a post Brexit Britain. LFL sales for the Group rose 3.4% during the year.